Bitcoin (BTC) has fallen more than 10% over the past seven days, just above its two-month low of $26,000 along with a significant reversal in the formerly popular memecoin sector.
The world’s largest cryptocurrency was trading at around $26,300 at press time, its highest level since March 17. Bitcoin hit a high for the week on Wednesday morning, rising to $28,300 after Wednesday’s weaker-than-expected CPI data.
“Bitcoin could dip below $26,000 over the weekend, but it is well-bid so far,” said Laurent Ksis, a cryptocurrency advisor at CEC Capital. “Obviously, the fundamentals to sustain BTC no longer exist and traders are concerned, but increasing BTC holdings at such low levels feels like a short-term strategy,” he added. rice field.
Oanda analyst Ed Moya believes Bitcoin is still under further downward pressure until the U.S. clarifies its regulations.
Ether (ETH) also fell this week, but slightly outperformed Bitcoin. It is currently at $1,770 after hitting a weekly high of $2,020 last Saturday.
What has soured the mood for Bitcoin is the price drop of some memecoins, notably Pepecoin (PEPE), which is currently down more than 60% in the past week of trading. A new token based on “Pepe the Frog” debuted in April and quickly climbed to over $1 billion in valuation. That has now been reduced to about $560 million.
Other memecoin losers include Dogecoin (DOGE) and Shiba Inu (SHIB), each down about 11% over the past seven days.
Youwei Yang, chief economist at listed bitcoin mining firm BTCM, said: “Memecoin hype is usually exciting, but it was followed by a market crash, much like we saw with DOGE and SHIB two years ago. It happens a lot,” he said. This week’s Memecoin fix is largely due to the calming of FOMO (Fear of Missing) feelings with these new Memecoins. ”
Altcoins were also not immune to declines, with Aptos (APT) down 20% and Filecoin (FIL) and Arbitrum (ARB) down around 17% each.
